Autodesk announces fiscal 2022 fourth quarter and full-year results

Fourth Quarter Fiscal 2022 Financial Highlights

• Total revenue increased 17 percent to $1.21 billion;
• GAAP operating margin was 12 percent, down 6 percentage points, including lease-related charges of $104 million;
• Non-GAAP operating margin was 35 percent, up 5 percentage points;
• GAAP diluted EPS was $0.40, including a $0.47 negative impact of lease-related charges; non-GAAP diluted EPS was $1.50;
• Cash flow from operating activities was $723 million; free cash flow was $716 million.

“By delivering greater value to our customers through the cloud and leading them to new ways of working, we are building enduring partnerships and shared growth,” said Andrew Anagnost, Autodesk president and CEO. “With consistent investment in technology and talent, and the evolution of our business model and customer experience, I’m excited and optimistic about Autodesk’s future.”

“Robust renewal rates, strong growth in subscriptions, and rapidly expanding digital sales resulted in record fourth quarter and full-year revenue, non-GAAP operating margins, and free cash flow,” said Debbie Clifford, Autodesk CFO. “Our strong momentum and competitive performance in FY22 set us up well for FY23.”

Fourth Quarter Fiscal 2022 Additional Financial Details

• Total billings increased 13 percent to $1.66 billion.
• Total revenue was $1.21 billion, an increase of 17 percent as reported, and 15 percent on a constant currency basis. Recurring revenue represents 94 percent of total.
• Design revenue was $1.05 billion, an increase of 16 percent as reported, and 14 percent on a constant currency basis. On a sequential basis, Design revenue increased 5 percent as reported and on a constant currency basis.
• Make revenue was $99 million, an increase of 21 percent as reported and on a constant currency basis. On a sequential basis, Make revenue increased 5 percent as reported and on a constant currency basis.
• Subscription plan revenue was $1.12 billion, an increase of 18 percent as reported, and 16 percent on a constant currency basis. On a sequential basis, subscription plan revenue increased 5 percent as reported and on a constant currency basis.
• Maintenance plan revenue was $23 million, a decrease of 25 percent as reported, and 28 percent on a constant currency basis. On a sequential basis, maintenance plan revenue increased 29 percent as reported, and 27 percent on a constant currency basis.
• Net revenue retention rate was within the range of 100 to 110 percent.
• GAAP operating income was $142 million, including lease-related charges of $104 million, compared to $184 million in the fourth quarter last year. GAAP operating margin was 12 percent, down 6 percentage points.
• Total non-GAAP operating income was $422 million, compared to $315 million in the fourth quarter last year. Non-GAAP operating margin was 35 percent, up 5 percentage points.
• GAAP diluted net income per share was $0.40, including $0.47 negative impact of lease-related charges, compared to $4.10, including $3.05 positive impact of a deferred tax asset valuation allowance release, in the fourth quarter last year.
• Non-GAAP diluted net income per share was $1.50, compared to $1.18 in the fourth quarter last year.
• Deferred revenue increased 13 percent to $3.79 billion. Unbilled deferred revenue was $949 million, an increase of $69 million compared to the fourth quarter of last year. Remaining performance obligations (RPO) increased 12 percent to $4.74 billion. Current RPO increased 15 percent to $3.14 billion.
• Cash flow from operating activities was $723 million, an increase of $65 million compared to the fourth quarter last year. Free cash flow was $716 million, an increase of $82 million compared to the fourth quarter last year.

Fiscal 2022 Financial Highlights

• Total billings increased 16 percent to $4.82 billion.
• Total revenue was $4.39 billion, an increase of 16 percent as reported, and 14 percent on a constant currency basis. Recurring revenue represents 96 percent of total.
• Design revenue was $3.87 billion, an increase of 15 percent as reported, and 13 percent on a constant currency basis.
• Make revenue was $364 million, an increase of 23 percent as reported, and 21 percent on a constant currency basis.
• Subscription plan revenue was $4.16 billion, an increase of 19 percent as reported, and 18 percent on a constant currency basis.
• Maintenance plan revenue was $76 million, a decrease of 58 percent as reported and on a constant currency basis.
• Total subscriptions increased approximately 767 thousand from fiscal 2021 to 6.04 million at the end of fiscal 2022. Total subscriptions adjusted for the multi-user trade-in increased approximately 595 thousand from fiscal 2021 to 5.65 million.
• Subscription plan subscriptions increased 871 thousand from the end of fiscal 2021 to 6.02 million at the end of fiscal 2022.
• GAAP operating income was $618 million, including lease-related charges of $104 million, compared to $629 million last year. GAAP operating margin was 14 percent, down 3 percentage points.
• Total non-GAAP operating income was $1.40 billion compared to $1.11 billion last year. Non-GAAP operating margin was 32 percent, up 3 percentage points.
• GAAP diluted net income per share was $2.24, including $0.47 negative impact of lease-related charges, compared to $5.44, including $3.06 positive impact of a deferred tax asset valuation allowance release, last year.
• Non-GAAP diluted net income per share was $5.07, compared to $4.05 last year.
• Cash flow from operating activities increased to $1.53 billion, compared to $1.44 billion in fiscal 2021. Free cash flow increased to $1.48 billion, compared to $1.35 billion in fiscal 2021.

The first quarter and full-year fiscal 2023 outlook assume a projected annual effective tax rate of 12 percent for GAAP and 16 percent for non-GAAP results, respectively. Shifts in geographic profitability continue to impact the annual effective tax rate due to significant differences in tax rates in various jurisdictions. As such, assumptions for the annual effective tax rate are evaluated regularly and may change based on the projected geographic mix of earnings.

Earnings Conference Call and Webcast

Autodesk will host its fourth quarter conference call today at 5 p.m. ET. The live broadcast can be accessed at autodesk.com/investor. A transcript of the opening commentary will also be available following the conference call.

A replay of the broadcast will be available at 7 p.m. ET at autodesk.com/investor. This replay will be maintained on Autodesk’s website for at least 12 months.

Investor Presentation Details

An investor presentation providing additional information can be found at autodesk.com/investor.